Russia and Iraq to sign $40 bln deal

Russia has confirmed it is set to sign a $40 billion economic and trade cooperation agreement with Iraq, a move that could complicate…

Russia has confirmed it is set to sign a $40 billion economic and trade cooperation agreement with Iraq, a move that could complicate Washington's plans to remove Iraqi leader Saddam Hussein from office.

"This document is being prepared," Oleg Buklemeshev, an adviser to Prime Minister Mikhail Kasyanov, said confirming a Washington Post report on the deal.

"We do not know when it will be signed. When it is ready, it will be signed," he said.

Buklemeshev said the five-year deal to set up cooperation in areas ranging from oil to electric energy and railroads would not violate UN sanctions imposed on Iraq after its 1990 invasion of Kuwait.

"It is in line with current international agreements," he said.

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